Many investors’ favorite meme stock AMC Entertainment (NYSE:AMC) is set to report earnings on Feb. 28. This upcoming earnings report should include some fireworks, and AMC stock is making a nice move heading into this report. Since bottoming below $3.60 per share earlier this month, shares of the movie theater giant have moved more than 30% higher, as investors appear to be looking for some sort of catalyst coming out of these earnings.
In a recent tweet, AMC’s CEO Adam Aron pointed to the company’s upcoming earnings call as being worth listening to, as he has “much to say” about what’s going on at the cinema giant. This fourth-quarter earnings report should provide some color on the company’s progress in terms of its operations and balance sheet, or lack thereof. At this point, most investors want to see some sort of fundamental improvement before diving deeper into AMC, and that’s understandable.
Let’s dive into what could be announced in this coming report and what investors may want to pay attention to as we near the end of February.
Where Is AMC Stock Headed Post-Earnings?
It’s clear that the market has continued to remain relatively resolute that meme stocks such as AMC aren’t likely to see the kind of short squeezes and short-term moves many traders grew accustomed to during the previous “free money era.” Indeed, the fact that AMC stock has made a series of new lows to kick off 2024 has positioned the stock very bearishly in this regard. Most bulls have been pushed out of the stock (forcibly or otherwise), and while fresh capital could pour into this name on a big move, we’d have to see some catalyst to drive such a surge.
Thus, investors may want to consider Aron’s recent comments intriguing. If a big announcement follows stronger-than-expected earnings, there’s always the potential for a pop. And given the amount of speculative capital that appears to be flowing into other areas of the economy like crypto, speculators who haven’t been completely wiped out from AMC’s recent decline and have some dry powder may be looking to put it to work in this name following earnings.
That said, it’s all speculation right now with regards to what the company could announce, if anything. Adam Aron’s recent comments suggest he has “much to say,” but not about what, or if anything major will be announced. Reading too far into this comment could be detrimental.
That said, AMC will certainly be a stock I’ll be following closely in the coming weeks. If anything big is reported, there will undoubtedly be a move one way or another, and I’ll be sure to cover that.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
